Is That a Qualified Long Term Care Insurance Agent?
Dealing with an unqualified long term care insurance (LTCI) agent will only lead you to financial issues instead of a reliable coverage which is patterned to your long term care (LTC) needs. Before you process your policy, especially one that falls under the Partnership Program, see if your agent has complied with the requirements that have been imposed by the National Association of Insurance Commissioners (NAIC) on long term care Partnership states.
Nearly all 50 states are offering Partnership long term care insurance policies but each has its own set of rules or guidelines which insurance agents who are aspiring to market Partnership qualified policies have to satisfy before they can become full-fledged agents.
State insurance regulators require agents to undergo training that is based on the LTCI Model Act of the NAIC before they can sell qualified LTCI policies not to mention Partnership certified policies. Some states require agents to have eight hours of training prior to selling LTCI policies while others enforce more hours.
As a buyer or consumer, it is your responsibility to find out if your LTCI agent has complied with the prerequisites of the state or else you might find yourself on the receiving end of an unpleasant financial situation.
Purchasing your LTCI policy through a fraud can result in an unreasonable premium rate that will wipe out your assets in no time, or worse you might not even qualify for your benefits later on.
Knowledge in Long Term Care Partnership States
Private insurance companies and various government agencies teamed up to come up with the Partnership LTCI Program which aims to provide all middle-class Americans with affordable LTCI coverage.
Prior to the creation of the Partnership Program, not many people could afford LTCI because it is a costly, albeit helpful, product. Nowadays, LTCI firms welcome buyers to purchase policies with a shorter benefit period and smaller maximum benefit amount so that they can save on their premiums. Should they need ongoing care after having exhausted their benefits, they can apply for Medicaid coverage without spending down their assets.
This supplemental coverage from Medicaid is actually the selling point of the Partnership Program because it’s one thing that people cannot receive from other types of LTCI policies. Partnership policies, however, come with certain requirements which you should know about to be certain that you will be able to claim your benefits afterwards.
Before you negotiate for a Partnership plan, see to it that your broker is legit. An individual who claims to have complete knowledge in the Partnership Program is lying if he cannot explain explicitly what it covers nor tell you which states are participating in the Program’s reciprocity agreement. Just because a state is implementing the Partnership Program it does not necessarily follow that it also participates in the reciprocity agreement.
States that are part of the reciprocity agreement allow individuals with Partnership qualified LTCI policies to receive the benefits and Medicaid asset protection that are inclusive in their coverage. This means, if you purchased your Partnership policy in California and later move to Indiana you will still receive the benefits which are stipulated on your policy as both states are among the first to enter the reciprocity agreement.
Take time to study about the Partnership Program in your state of residence as well as other long term care Partnership states.
Still looking for free long term care quote? We can give you free quotes and as well as long term care insurance costs in your state.
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